GigaCloud Technology Inc (NASDAQ:GCT) reported its second-quarter 2025 financial results, delivering revenue and earnings per share (EPS) that exceeded analyst expectations. The company posted revenue of $322.6 million, up 3.8% year-over-year, surpassing the consensus estimate of $293.0 million. Diluted EPS came in at $0.91, a 40% increase from the prior-year quarter and significantly higher than the estimated $0.42.
Key Financial Highlights vs. Estimates
- Revenue: $322.6M (actual) vs. $293.0M (estimate) – beat by 10.1%
- EPS: $0.91 (actual) vs. $0.42 (estimate) – beat by 116.7%
- Net Income: $34.6M, up 28.1% YoY
- Gross Margin: 23.9%, slightly down from 24.6% in Q2 2024
The strong performance was driven by growth in the GigaCloud Marketplace, where gross merchandise value (GMV) increased 31% year-over-year to $1.44 billion. Active buyers rose 50.9% to 10,951, while third-party (3P) seller GMV grew 32.5% to $757.5 million.
Market Reaction
Following the earnings release, GigaCloud’s stock rose 8.8% in after-hours trading, reflecting investor optimism about the earnings beat and continued growth in marketplace activity. The stock had been relatively flat in the prior week (-0.03%) but dipped slightly over the past two weeks (-11.1%). The post-earnings surge suggests the market was positively surprised by the company’s ability to maintain profitability despite macroeconomic challenges.
Business Outlook vs. Analyst Estimates
For Q3 2025, GigaCloud expects revenue between $295M and $310M, compared to the analyst consensus of $307.1M. This guidance implies a slight sequential decline but remains within expectations. The company did not provide EPS guidance, but the strong Q2 performance suggests continued earnings momentum.
Operational and Strategic Highlights
- Share Repurchases: The company repurchased 4.3 million shares for $71 million under its expanded buyback program.
- Expansion in Europe: Management highlighted efforts to scale European operations to match U.S. market penetration.
- Debt-Free Balance Sheet: The company emphasized its strong cash position ($303.7M) and disciplined capital allocation.
Conclusion
GigaCloud’s Q2 results demonstrate resilience in its B2B e-commerce platform, with revenue and EPS comfortably exceeding expectations. The after-hours stock movement indicates investor confidence in the company’s execution and growth trajectory.
For more detailed earnings estimates and historical performance, visit GigaCloud’s earnings page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.
